Book contents
- Frontmatter
- Contents
- List of Figures
- Preface
- 1 Objective and Methods
- 2 Intrinsic Utility Analysis
- 3 Expected Utility Analysis
- 4 Expected Utility's Promotion
- 5 Two-Dimensional Utility Analysis
- 6 Group Utility Analysis
- 7 Application to Trustee Decisions
- 8 Power and Versatility
- Appendix: Consistency of Calculations of Utilities
- References
- Index
5 - Two-Dimensional Utility Analysis
Published online by Cambridge University Press: 28 July 2009
- Frontmatter
- Contents
- List of Figures
- Preface
- 1 Objective and Methods
- 2 Intrinsic Utility Analysis
- 3 Expected Utility Analysis
- 4 Expected Utility's Promotion
- 5 Two-Dimensional Utility Analysis
- 6 Group Utility Analysis
- 7 Application to Trustee Decisions
- 8 Power and Versatility
- Appendix: Consistency of Calculations of Utilities
- References
- Index
Summary
Analysis of the social utility of a new safety standard in Section 1.1 used two dimensions, people and their goals. Chapters 3 and 4 introduced a third dimension, possible outcomes. I have not yet presented group utility analysis, in which the dimension of analysis is people; that is reserved for Chapter 6. But having presented intrinsic utility analysis and expected utility analysis, in which the dimensions of analysis are goals and possible outcomes, respectively, I may undertake a two dimensional analysis of an option's utility for a person.
A two-dimensional analysis expands a point in one dimension of analysis along the other dimension of analysis. In this chapter's two dimensional analysis, the expansion takes place at an outcome, a point in the dimension for expected utility analysis. A possible world serves as the outcome, and its utility equals its intrinsic utility. Hence an intrinsic utility analysis may decompress its utility along the dimension of goals.
The two-dimensional framework makes my decision space more versatile. Using it, intrinsic and expected utility analyses may conjointly dissect an option's utility. This chapter explores the analytic fruits of two-dimensionality. It uses intrinsic utilities to compute comprehensive utilities of options given uncertainty.
INTRINSIC AND EXPECTED UTILITY ANALYSES COMBINED
Chapter 1 outlined multidimensional utility analysis. It involves the conjoint application of two or more independent forms of utility analysis.
- Type
- Chapter
- Information
- Decision SpaceMultidimensional Utility Analysis, pp. 149 - 167Publisher: Cambridge University PressPrint publication year: 2001